Page 78: of Maritime Reporter Magazine (April 1993)

EDITORIAL

MARITIME POLICY Should Be The

Foundation Of Economic Reform

By Congressman Owen Pickett

As President Clinton be-gins the formidable task of building an economic program that will bolster activity, create jobs and restore pros- perity in our nation, nowhere is his leadership more urgently needed than in the task of strengthening our domestic maritime industries.

The decline in this important eco- nomic sector has been truly stagger- ing.

According to a report published

January 6, 1993, by the U.S. Mari- time Administration, the number of privately-owned, deep draft vessels in the U.S. merchant fleet totaled just 467 in 1992, an incredible fig- ure for a once-preeminent maritime power. Fifty years ago, at the end of

World War II, there were more then 5,000 of these vessels in the U.S. merchant fleet, and more than 100,000 people manning them.

The report documents similar de- creases in other areas. For example: — There are only three commer- cial ships on order or under con- struction in U.S. shipyards, and amazingly, this is better than we were doing throughout much of the 1980's. — There are 3,200 fewer oceango- ing shipboard jobs than there were one year ago. Fewer Americans work as longshoremen, and shipyard jobs are rapidly vanishing.

We cannot allow our nation's maritime industries to continue on their present course.

As every war and conflict in mod- ern history has demonstrated, a strong sealift capability is essential to meeting the force deployment re- quirements of a major contingency.

Fully 95 percent of all American troops and supplies must be moved by sea during a conflict. In an emer- gency, our nation will have to de- pend upon existing U.S. flag cargo ships under charter to the Navy; its own fleet of fast sealift ships; U.S.- flag liners under contract with the government; and vessels from the

Ready Reserve Force.

Despite the allies' success in

Desert Storm, the Persian Gulf War did reveal the clear limits of our present sealift capability.

Largely unnoticed were the ship- yards in my district and around the nation that worked day and night to get an aging and rusting fleet of reserve vessels seaworthy.

We had to round-up aging and increasingly rare merchant seamen to man those ships. And while all

Americans can be proud of what was achieved on such short notice dur- ing Desert Storm, there is some doubt about how we would fare in a longer conflict, with a stronger ad- versary, and less allied support. "Our nation must get serious about negotiat- ing an end to the large govern- ment subsidies that our foreign competitors make to their shipyards."

National security is not the only reason why our maritime industries are important to this nation.

With a strong maritime policy, grounded in trade policies that elimi- nate the unfair shipyard subsidies of our competitors, the U.S. can put thousands of Americans back to work and re-establish itself as the world's undisputed maritime leader.

More than three years ago, the

National Commission on Merchant

Marine and Defense issued a com- prehensive report which outlined a program to renew American flag shipping. The report called for tax incentives, a procure and charter program, and other needed mea- sures to revitalize our maritime in- dustries. It is a good starting point for developing the program we now need. Other steps can be taken as well. We should act expeditiously to move our next generation of fast sealift ships from the drawing board to the drydock.

More than $3 billion has already been appropriated for these ships, and their construction will help to preserve and create jobs in our nation's shipyards.

Our nation must get serious about negotiating an end to the large gov- ernment subsidies that our foreign competitors make to their shipyards.

It is common knowledge that some of our leading competitors employ a variety of direct and indirect subsi- dies to give their shipyards a com- petitive price advantage in world markets.

President Clinton has recently acknowledged the effect of such sub- sidies on the manufacturers of air- liners by such companies as Boeing, and he should understand that the same principles apply in the con- struction of liner vessels.

The fundamental question is whether we want an American-flag merchant marine for our nation. The answer has to be "yes," and what- ever is required to make this "yes" a reality must be done.

If our trade negotiators are un- able to achieve an open and com- petitive market, then we must be willing to take stronger action.

In the 102nd Congress, the House of Representatives gave overwhelm- ing approval to legislation intro- duced by Congressman Gibbons of

Florida that would prohibit new ships built with subsidies from call- ing at U.S. ports unless the value of the subsidy was first paid to the U.S.

Treasury, or unless the nation of construction had signed a trade agreement with the U.S. to elimi- nate its subsidies completely.

The "shot across the bow" did not become law, but it did focus atten- tion and debate on this critical and sensitive issue.

Congressman Owen Pickett

Even without any new legisla- tion, the Clinton Administration can achieve much by vigorously en- forcing laws that are already on the books which are designed to pro- mote and sustain a strong maritime industry for our nation.

One such law is Section 27 of the

Jones Act, which requires that all vessels engaged in coastwise trade be built, rebuilt and repaired in

American shipyards.

As America's shipbuilding and ship repair industry knows all too well, this law has not been enforced as Congress had intended. Judicial and administrative interpretations have hollowed out Section 27 to the point where there is virtually no limitation on the rebuilding and re- pair of Jones Act vessels that may take place abroad. The American interest has not been protected and a legislative remedy is clearly needed. I proposed legislation in the 102nd Congress to restore the original intent of Section 27 of the

Jones Act but it was not acted upon favorably. As President Clinton and Transportation Secretary Pena work to develop a new and more aggressive national maritime policy, they would do well to close the loop- holes in existing law as a part of their new program.

The few remaining men and women who work in the U.S. ship- yards, who man U.S.-flagged ves- sels, and who are engaged in waterborne commerce, know that

America can successfully compete in the maritime trades, if the artifi- cial impediments to free and fair competition are eliminated. 80 Maritime Reporter/Engineering News